The theory of comparative advantage suggests:

Question

Quizplus · Accepted Answer

The theory of comparative advantage suggests that a country should trade based on its comparative advantage, which means that a country should focus on producing and exporting goods that it can produce at a lower opportunity cost than other countries and import goods that other countries can produce at a lower opportunity cost. This allows countries to specialize in producing goods that they are relatively better at and leads to increased efficiency and greater benefits from trade.

The Theory of Comparative Advantage Suggests